♪ imus in the morning ♪ >> it's a big anniversary for the no goes. and they're dancing in the streets of pyong yang. maybe we will be dancing on wall street. how about that, this is one good rally puts the dow at 15,000. all over the country people are trying it remember their pass words to check the 401(k).

we will not get there when the opening bell rings today, but we're closing out a terrific week for your money. one more record. president obama will become the first president ever to spend 4 trillion dollars in one year. "varney & company" is about to begin. all stations come over to mission a for a final go. this is for real this time. step seven point two one two. rify and lock. command is locked.

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>> all right. everyone, let's be clear this story has no impact on the market that we can detect. however, over the weekend it might be different. look at this, hundreds of north koreans dressed in traditional garb, the first anniversary of kim the younger's power. and noko's may be capable of a nuke on a rocket. and hours before secretary of state john kerry landed in seoul, south korea and meet with a leader and called the north

korean rhetoric unacceptable. watch this story over the weekend. we've got three eye popping numbers for you. firstoff, president obama, the white house office of budget management reports obama will be the first president to spend 4 trillion dollars in a single year, watch out. where is that money coming from? we're not collecting all of it. in 2013 they'll collect 2.7 trillion dollars, clearly taxes will not pay for that 4 trillion dollars worth of spending in the future. what's the result? check the latest poll from the journal, 68% of people say making ends meet is a serious problem. according to the poll it's the biggest concern for families today. don't tell that to the markets. we're just one decent rally away from hitting 15,000 on the dow. i've got another number for you, going not going to like this, retail sales down in march more than expected.

and a cut for economic growth here. how much money did jamie dimon's bank make in the last three months, another number coming for you. and 15 k on the dow, oh, so close. we're not going to get there this morning, but you will want to watch your stocks and how they're doing on friday's opening bell, which is next. 

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>> all right. we're a minute to the opening bell. we are expect a down side move, and let's bring in from chicago, larry levin. i'm looking at the retail sales numbers, sales are down in march. that's got to be hurting the market at least at the open. >> it's bringing the s&p down 6 points and the dow jones a little also, i think the markets will find support. the weekly basis, the fed is back stopping the market and retail sales can be bad and unemployment can be bad and the market wants to go up. we're at 1580 in the s&p. stuart: you're right, we've been saying this you and i, for two weeks, and bad news means that ben prints. good news means that the markets improve, markets goes up in both cases. sticking with that? >> the market almost can't lose,

good people long the market. but artificially we want it to go up by good economic data and we're not seeing that. so the fed has to step in again. >> see you later. the opening bell, it is now ringing. okay, it's friday, we've had a terrific week, we're that close to 15,000, i can't do the math in my head. it's about 164, charles is with me, he does math. 164 points away from the 15,000 mark. look, we're opening lower and looking at a 40, maybe 50 point drop for the dow in the first few minutes, does it bounce back up again from there? i don't know. you heard larry levin, this market wants to go up. will it go up today when they've got the selling out of the way on the early going. concentrate on individual stocks, j.p. morgan, guess what, made more than 6 billion dollars in profit from january through march. 6 billion, not bad and it's raising its dividends. nicole, i've got to believe that

that stock is up? >> well, let's see here now. it's not exactly up. it's down. it's down about 3/4 of 1% right now and you know, the good news is j.p. morgan is getting past the london situation, and litigation for that is tapering down. the major businesses did turn in tepid performance, revenue decline and jamie dimon, the ceo said that loan growth was soft and it's sort of a mixed bag. stuart: i can't get over it, 6 million dollars in three months and the stock goes down. >> not enough. stuart: it's not enough, i want more. all right, nicole, i want to move on to wells fargo. they made 5 billion dollars the first three months of the year and that stock is down 1.8% now. so there you have it, two big banks, very profitable. it's not good enough, the stock is down. so let's move on to j.c. penney.

it's desperate for cash now, trying to raise a billion dollars. so give me the stock price, please. >> it's interesting, i don't know if you saw the post the other day with ackman and him saying he he's going to hold on to j.c. penney. it's at 14.90, trying to beef it up, and hire blackstone as their advisor and see what happens with it. and he and the other shareholders are prepared to add capital to get this thing up and running, competitive and better company than what it ever was. stuart: ackman said-- >> i added that part in myself. stuart: ackman thinks it's worth $70 a share. come in, charles. they need a billion dollars. and 70 a share? are you buying it. charles: not yet. they've gone through this before and it's a big enough brand and do the right thing and take

their time. i think that ron johnson wanted to hit a grand slam right off the bat. you can't change a lumbering giant. stuart: we're close to 15,000, we've opened down 45, stabilized on the down side and not fallen any more in the last few seconds and low selling at the opening bell. i want to bring in john layfield from layfield energy. three big numbers, the first is 15,000. do you think that we get to 15,000 on the dow soon and go up from there? >> i think we get to 15,000 on the dow, yes. i don't know how soon. you know, that's dictating certain things as momentum shifts, i think we get there. there's a disconnect between this economy and the stock market. the stock market has performed phenomenally over the last couple of years. you can't say that about the economy so there is a disconnect. and i think one of the reasons is because we're one of the safe

havens still. in cyprus, people want to come to the market and trading at traditionally historic discount. stuart: i see you in paradise, in the caribbean or the back drop. even where you are people are looking to find their pass words to get in the investment accounts and i know that's happening where you are, paradise or no. am i right? >> no doubt about it. we're back to where we were before the crash and seen people realizing their gains come back to him and still not feeling of flush wealth and not having that wealth effect yet. as far as the consumer, in our economy in the u.s. at least 70% by the consumer and they're not as invested in the stock market as you would have people here in bermuda, for example. stuart: here in bermuda. >> a great place, stuart, you and charles come visit me. stuart: stay there for a second. are any of your clients looking

for passwords? >> my clients are, but unfortunately, most of america, a lot of people watching this sold already. sold at big losses already and one thing that's interesting. stuart: didn't they come back in? three years to get back in. charles: they're tiptoeing and the most amazing stat of the week, there's-- the american association for individual investors reading at 19.3, the same exact level in march of 2009. 8,000 points different and the same exact level it was in 2009. the only thing that's crashing so far this year is bullishness amongst individual investors, it's crazy. stuart: i'm glad you spelled that out. i thought it was the other way around, that's interesting. john layfield still with us from bermuda, got another number for you, 4 trillion dollars, president obama is the first president ever to spend 4 trillion in the year 2013 and--

this is a disaster, everyone says that simpson bowles is the best thing after, but theydy missed him. and they need to cut revenues and doing nothing above. and by the cbo we're facing a trillion dollar deficit ten years from now. and at some point this becomes unsustainable. nobody is willing to do the right thing now because what you're going to have happen what happened to prime minister cameron in the u.k. your favorable will fall because austere measures hurt the economy and no politician is willing to. stuart: a number for you 68% the people in a wall street journal poll, 68% says they're worried, very worried about making ends meet. what does that tell you about consumer america? >> we had the lowest labor participation rate since 1979. we have structurally high unemployment, not cyclically

high unemployment, which is a problem that we have in the united states. we're not built for structurally high unemployment. and the fed is keeping the interest rate at zero doesn't help structural problems, it can help cyclical problems and weighing on consumer sentiment. >> whatever budget we come up with, does not promote growth. and we need growth more than anything else. they have a hard time making ends meet and charles has given us great statistic that a lot of people sold years ago and didn't get back in for the rally, then back to the beach. >> we're the only industrialized nation that doesn't have an energy growth. we need a better policy as far as job growth and that's not what we're getting. stuart: last word to you, charles, i think that john is in cuba with jay-z, not bermuda.

stuart: do you think that he would go to cuba? >> busting his chops. i'm jealous, that's all. stuart: john, it was great hearing from you. please don't be a stranger to "varney & company" no matter where you are. >> love you stuart, great to be on your show. stuart: another big number for you. we now know how much those obamacare navigators are going to cost us. remember, they're the people who are going to help people everybody wade through the red tape of the health insurance bureaucracy under obamacare. how much are they going to cost? it's a very big number. we'll tell it to you with monica crowley. she's joining us at the top of the hour, all right, seven early-- the dow is coming back a bit. okay. not bad. >> didn't take long. >> we're only down 28. not bad. j.c. penney running out of cash, wants to raise a billion dollars, not good enough for the market. we'll stop there flat. disappointing profits of the trucking company, jb hunt and it's down, it's down 2%. linked in is buying the mobile

news reader, pulse paying for it. and wired magazine is reporting pap pell is going to pay 53 million a class action suit own iphone, ipod touch warranties, apples is up 2 bucks on that. and hastings said that subscr e subscribers watched 4 billion hours of video. jeffries upgraded home depot to buy from hold. it expects strong sales gains. home depot is up this morning. toyota up 4% yesterday, despite the big air bag recall. and down 12 cents. this is what a lower yen does for you. you can export more cars to america. toyota at 112. now, look at this, please, the dow is only off 20 points. we were down 45.

now we're down 20. and that means we are 145, what. charles: 55. stuart: thank you very much. we're close to 15. and time is money, 60 seconds worth of what else we've got for you starting with this. were we premature to put the personal computer on death watch? clayton morris weighs. death or dying on the pc. stuart: a woman whose company has found away to find a medical device tax. regenerative medicine. it's fascinating stuff and we're talking about it and she's with us. the irs responds to our report that it could read your e-mails and text messages. let's just say the agency's response is less than a full denial. the full story at 10:45 for you. we always thought that owning a home is the american dream, but no, our next guest says that's not the case anymore. could renting be the new

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>> well, that wasn't much of a selloff, was it? we're down 25 points, that's it. not too bad and certainly a great week. i've got bring this news to you. baseball highlights with a british accent, only here, boys, because there it was a fight and a lot of money involved. listen to this. l.a. dodger pitcher zack greinke hits the batter with a pitch. and he broke his collar bone. greinke just signed before the season and now the fight, do you think that's big? it could be huge if this guy, if he doesn't fully recover to the ability that he has now, who

knows the implication. stuart: who does he sue, the player that rushed him, baseball. stuart: stop fights in baseball. the dodgers manager wants the player to be out as long as the pitcher is out. that would be a quid pro quo punishment, huge. charles: unfortunately, sometimes you may have a guy making a million a year is out and the guy making 25 million is out. not necessarily a quid pro quo. stuart: owning a home no longer the american dream. 61% of adults say renting is the new american dream. what? here to explain because he agrees with this premise, anthony is a frequent guest, runs and owns a real estate company. make the case. get out of here. >> what was the old american dream getting a predatory loan-- >> wait a minute, stop it. a piece of the action, a tax break and a chance of riding with the real estate tide over

the course of your lifetime that you're in the home. you're telling me that's dead. >> no one was achieving it. all you had to do sign and show up. stuart: i got my first house in 1978 in san francisco, 60,000, sold it for $107-5. >> no money down. >> no, 20% down. >> the predatory lending with no money down is really what really confused people. charles: before that, it was the american dream. and it was a way to keep up with the inflation. >> yes. stuart: now you tell me how does renting bring me into the american dream the way that owning did. >> i think that right now people are afraid to buy. there has to be more distance between the recession and what's going on today. i think there isn't enough distance right now. people are still leery. stuart: anthony, you're selling your own book, you are in the real estate business and you sell single family homes, don't you. >> no, i'm actually in the rental business, i rent and do

sell, but mainly our business is rental. stuart: you're calling up your own book. >> it says what's happening here. people are choosing to rent. renting an apartment today you'll get more pound for pound dollar per square foot quality of life. charles: i've got to tell you, i read a week ago, the top 100 markets in this country, metropolitan areas, it is more expensive to rent than own. i mean, now, that's shocking, and still, your business is booming? >> well, it is more expensive, but it's more lucrative in the end if you need the agility to move. if you're not sure where your job is going to be for the next two years, why do you want to commit to a home. stuart: you have he mobility and you don't have to pay the property taxes or i could make that financial case, but you've got no stake in the action, if the value of that home goes up and you've got to believe that from the baseline prices we're % going up a little bit. >> you're absolutely going up a lot of it. only if you're going to buy and

hold. stuart: you get no tax break if you're a renter. somebody, 20's and 30's, two income family desperate for a tax break. >> they don't qualify to buy, that's what it is. there are strict rules and regulations now to buy. stuart: that's what it comes down to. >> that's what it comes down to. your people who rent can't get the 20% down even if they want a buy. that's the crux of your argument. >> that's the crux. stuart: and where to stand. charles: the obama administration is pushing to make the loans like 3% down, are you for or against it. >> i'm for it, anything that's going to stimulate the economy and create home ownership. charles: that's the slippery slope you were describing leading into the interview. >> sometimes when you're suffering a heart attack you're careful what you eat. stuart: this guy is both sides--

why he's got that watch. i think the american dream in ownership and renting, but as long as your business a booming in the rental sector, go for it. and where are we? the dow is almost dead flat. come back, but gold is way down. 31 bucks lower. stuart: and paul krugman rails against gold in the new york times, almost said wall street journal-- it's the times, you're taking your head. charles: that may be the best buy signal of gold all year. stuart: and there's a link betweening margaret thatcher and how she fought socialism then and president obama in america now. i'm going to boil it down in my take next. ♪

#

>> but we have to pass the bill so that we can find out what is in it away from the fog of the controversy. imus: sorry, but we do keep running it, nancy pelosi talking about passing obamacare to find

out what is in it and almost every day we're finding something else in it, like the cost of those tens of thousands of navigators. we've got the dollar number, can you guess what it is? we'll tell you next, it's huge. plus, are we correct to put the personal computer on death watch? clayton morris weighs in on the future of tech, coming up the top of the hour. early this week, margaret thatcher passed away. early next week, you have to have your tax forms in to the irs. there is a connection. here is my take on her death and your taxes, i'm not being cute. lady thatcher had a lot to say about taxes and president obama had a lot to do with the taxes you will pay by next monday, and one of the best thatcher quotes was this, you don't care if the poor get poorer so long as the rich get poorer, too. she was talking about anyone who made money and knew the left wanted to bring them down, tax

them to death. what the socialists wanted then and now and that was britain then, how about america now? just look at what president obama has done here. he's raised taxes on successful people, if you make money, this president will take it off you. meanwhile, the poor and the middle class are worse off, taxes up on the rich and standard of living for everybody else is down. for some time it's been obvious that the vast majority of people in america are not doing well financially. but so long as tax hikes on the rich would bring them down, too, that's fine with this administration, and the president's budget goes further, tax the rich some more, take another trillion off them, redistribution no matter what, redistribution from rich to poor, even if everybody loses. you don't care if the poor get poorer so long as the rich get poorer, too, the way the left thinks, true in britain then, true in america today. ♪

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stuart: what an hour we have for you on this friday, april the 12th. now we know those community organizers that will guide you through obamacare will cost you $54 billion per year. big bucks for navigators. now we know how bad it is on personal computers, industry is dying. how long before it is declared truly dead? and the tech titans go to tahoe. the new money is spent these days. we have the pictures, the prices and those personalities.

♪ stuart: all right, those stories in a moment. but first, tax day just ahead. president obama will collect $2.7 trillion in taxes this year, so here's the question. if we bring in all of that mon money, $2.7 trillion, that is a record, we still have a deficit. what will it take? monica crowley is with us. the record intake of money and still in your trillion dollars deficit. monica: a trillion dollars more going out than coming in. these are staggering numbers, but this president is fundamentally not serious about the deficit. still you have an outlay of a trillion dollars more it tells you this president is not focused on writing in the deficit or raining in governme government, it is the exact opposite.

what we have seen over the last couple of years his record-breaking numbers people on social welfare program including food stamps. that is more than the entire population of spain in this country now on food stamps. the expansion of health care programs, medicaid in the state, medicare and now the biggest entitlement of them all, obamacare now starting to kick in. so this discrepancy between the amount of money coming into the treasury versus the amount of money going out is only going to get worse. stuart: and you say it is deliberate. monica: it is all by design. stuart: deliberately breaking the bank, that is a big statement. monica: here is the objective, to grow government as fast as possible and to grow as many people dependent on the government as possible and lock them into that dependency to create a permanent democrat voting majority.

stuart: had a disappointing consumer confidence number from michigan at the top of the hour. now we have business sales apparently picking up nicely up 1.2%, bringing the doll back a little. down 35 points after 32 minutes worth of business. i wants to go to one specific stocks, that is netflix. watching 2 billion hours of ramming in three months. i take it netflix is up. charles: it is upcoming continues to rise up 1.1%. interestingly enough they put it out on social media that members of netflix have watched 4 billion hours over the last three months. to give you some perspective, sounds like a lot, it actually is a billion more than the last time they said a number. average netflix users is watching about an hour and a

half per day. "house of cards," you can factor that in there. up 162%. stuart: i have clayton morris, tech guru, standing next to me. putting in his headphones and dialing up netflix. 4 billion hours in three months, doesn't that bring up a lot of bandwidth? >> absolutely. if you cannot get onlinecommunal one, your whole neighborhood is on netflix. original programming like "house of cards," you cannot beat it right now. stuart: bad news on consumer confidence, but not too bad of news. starting in october tens of thousands of people will start working to help you choose

between the different options under obamacare. these people are called "navigators." they cost $54 million in federal grants. $54 million, for the first year, that is it, one year, $54 million community organizers planning of obama voters. charles: absolutely. they will tell you there is a bronze plan, silver platter, awesome plan. they will you view a brief explanation of how the plans work. the only people who qualify for the job right now, acorn hall five, planned parenthood, a lot of unions involved. they will let you know you can register to vote right now. monica started off talking about a permanent democratic majority.

certainly this won't hurt. stuart: are you sure these community organizers will get out and navigate for you through obamacare? they will sign you up to vote? charles: legally they won't be able to push you, but you can register to vote right now, mr. jones, don't forget who gave you this. stuart: that is realistic. $54 million. monica: that is probably a lowball estimate because a lot of these folks will be making $50 per hour to navigate you through the maze. the monstrosity that is obamacare. stuart: i am tempted to play the nancy pelosi soundbite again. but they are tired of it. it is the outrage story of the

week. first, the irs said it would go after your facebook and twitter accounts, and then we learned the irs could look at your private e-mails without a warrant. now the irs launches a nondenial denial. the story at 10: 945 this morning. back to nicole at home depot. nicole: let's take a look, a look at home depot, really represents a few things. they got an upgrade from jefferies from a bite to a hold. positive comments from analysts. consumer discretionary stocks doing so well, this is one of them. hitting an all-time high. also a dow component, that as positive points to the dow while the tech stocks, which were down yesterday, are still dragging on the dow. stuart: it is my tough job to

drag clayton morris away from watching "madman" on his smart phone. i want to talk about the death of the pc. according to one research firm, pc sales down a whopping 14%. is the pc just going to die? >> now. we saw the resurgence of library recently, the stock is going up for blackberry recently so i will never say that. people always want to use with steve jobs called the truck. the truck is the pc, the thing on your desk to do the heavy lifting to move the lumber around your yard. people will have a desktop pc in the family to share. i just bought a new computer recently. pc is personal computer.

it can be argued even a tablet is a personal computer. you think of the large desktop devices. an imac is a pc. sales still going down, so they will not be as large part of the market as they used to be. but you just bought a pc. monica: i did, a dell with a huge monitor. i need, when i'm at home, i need something fast with a real keyboard to do word processing especially. i write a column, i write books, i need the heavy duty machine. stuart: but they are becoming cheaper and cheaper. >> we're also seeing the problem with windows 8 having a problem catching on. asking to get the older windows. monica: i actually have the older windows. >> that really is telling. you see a direct correlation between the launch of the ipad

in 2010, the chart is unbelievable. so i'v ipad, handheld tablet is the future. a kid going to college once a simple, thin laptop. stuart: the companies in the pc business, they are not making money. they are going down. >> i don't know. last night i had a chance to blow the whole line of lenovo products. they were all laptops. flip around tops, you can take them to class, they have the beautiful laptops touch screen. lenovo is having to be smarter about this, but the large desktop pc, we will still need trucks. it will not die, but you will

still needed for the heavy lifting around the house. stuart: seems like everybody will have more than one computing gadget. you have a smart phone, right? monica: i have a blackberry. everybody makes fun of me. but i also have an ipad. stuart: it is trying. monica: it seems like you need more than one in case one goes down. you can still do your other communicating. stuart: what have you got? >> i just got a 27-inch imac, that is my workhorse. i like having that one main hub, that is a big solution for a lot of families. when the kids go off in their own direction, they have their own tablet. stuart: you have the desktop. >> i use an iphone and an

ipad. i have a facebook phone in my pocket right now. the new facebook phone, which comes out very soon. i have them for two weeks until i send them back. my main iphone that i keep. i don't have a separate mp3 player. that is so three years ago. stuart: i have a blackberry. >> what is your computer of choice? stuart: i believe there is an apple in the kitchen. so now you know. that was good, thank you very much, indeed. it might seem funny, but it is not, they're dancing in the streets of north korea celebrating the one-year rule of kim jong moon. now they can fire a nuke, so we

should have a nuke input on top of a rocket, that could hurt the financial markets if something happens. we will bring you the story next. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers.

stuart: link in both the online newsreader. it is reported 90% stock cash. the stock down a fraction that is.

jpmorgan $6 billion in profits in january and march. raising its dividend. shares up 19%. jcpenney working with blackstone to raise a billion dollars. it is struggling. shares of jcpenney down this morning again. $14 per share. manhattan and brooklyn cop in the list of most expensive cities to living in the united states from the council of committee research to research the cost of living. north korea nukes is now a financial story, and we are on it. friday night, buddy.

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stuart: we have a story that has had little impact on our money. that however might change. you can see them dancing in the streets of north korea celebrating a one-year rule of kim jong-un. nobody is smiling. however here is the news, is revealed north korea is capable of tipping a ballistic missile with a nuke. kt mcfarland is on the phone. this just came out within the last 24 hours. does it change the ballgame especially over this weekend? >> yes. this weekend is put up or shut up time in north korea. they will shoot off some missiles, don't think they will

shoot them up with nuclear weapons, but if they are capable of doing that, that changes the whole ballgame. stuart: if they shoot off a missile, no matter where it goes, will america shoot it down? we can. >> we can, so can south korea and others. we will shoot it down only because it will hit japan, south korea or guam. either by intention or there is an accident. if it is going into the deep blue sea, we don't shoot it down. stuart: you don't know that. >> the minute it leaves the launch pad, you can see where it is aimed for. it is going to japan, the deep blue sea. you don't know if it will have a mistake in the course and blow up or fall apart but you can quickly shoot it down. the problem is north korea has nuclear weapons. the take away of that is north korea has nuclear weapons. next year they could be a nuclear power. in stability in northeast asia

just went up exponentially because the south koreans, the japanese will all think we need nuclear weapons of our own. north korea will be even more belligerent next year when it tries to do this. stuart: thank you very much for joining us this morning. now, let's talk financial impact, everybody. if they fire off a missile and demonstrate the capability of firing a missile with or without a nuke on the tip of it, that changes the equation, does that hurt the market? charles: we don't think so. they have the ability. they have very little control over these things. they have been launching them over the years and they don't even know where they will land. nevertheless if it just goes into the ocean and feels like another way of trying to ransom money from the west to feed them or give them food, we have seen it before.

stuart: i think if they fire one off this weekend, you will see a marked impact on monday morning, especially if she is wrong and they shoot it down because the three powers can. japan, south korea and united states. that is my opinion. charles: that changes the equation because that means something sustains the ability. monica: if they shoot it down if changes the dynamic and they can get more aggressive and you have a wider conflict underhand which could affect the market. if it goes off into the sea, you have no ripple effect. unless the japanese market starts to get shaken. then it could have a real effect on new york. stuart: a nuke small enough to fit on the top of the rocket, that changes the equation in my opinion. monica: if they tip o the warhed with a missile or not is a different story. it simply has not worked and this is a lesson for iran.

it sports an arms race, iran is going to want nukes, japan is going to want nukes. charles: there will be an arms race in that region anyways because of the chinese. stuart: and the japanese they want to change the constitution. we have a loss of 30 points. pretty stable for some minutes. not a bad sales were a gain in business sales, but other than that, down 32. another consequence of obamaca obamacare. one company might have a way around that tax. this is fascinating stuff, next.

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stuart: check the market, still down at 30 points, so we're still at 163 and change away from 15,000. i have some good news, starbucks will lower the price of the coffee excels in stores. nicole: this is good news for all coffee lovers across america. starbucks is up 1.7%. what they're doing is a battle of the coffee brand stores.

others have cut the prices of their coffee. maxwell house and folgers and dunkin' donuts and millstone coffees reduced their prices back in february. in answer to that, starbucks will be cutting their ground and whole-grain coffee. it is not happening until may 10. stuart: in my house it is still called for box, not starbucks. starbucks, "four bucks." i wanted to be three bucks. i am just a missionary to this country, that is all i am. time for charles to make you some money. he is made a lot of money lately. an update, rite aid, go.

charles: a week ago of 35% on that one. number three gainer yesterday. you may get 100% move on it, but i don't want to get too greedy. stuart: the next one. charles: i think the inflection point is here. you see them all over the place. they gave out an estimate last night, to be 17 $172 per ton. the first is picked up in nine or 10 quarters. the stock is down dramatically. breaking out, closing above 25, a minimum of 30. this was a $70 stock within the last year. hammered, the downside is over, this could be a hit to the upside, greater than average risk. i would say greater than average

risk. i am pinpointing it right now. i loved it, baby. if i say what i really wanted to say, go out and buy all you can right now. stuart: wait for this. our next guest runs a company that sells regenerative medicine using tissues from cadavers. she says this is a way to avoid obama cares medical device tax. you are the ceo of axogen. you harvest tissue from cadavers and implant those tissues in people with a condition and implant is a way around using a medical device implant, is that right? >> absolutely.

the tissue donation process has been around for a long time and that allows the body to heal itself, these surgical implant can go in and create a blueprint for regeneration of tissue. stuart: that is not a medical device. so that implant is not cast. >> it is considered a different regular tory classification, it does not, is not subject to the medical device tax which is very difficult and devastating for start up company. stuart: you can't apply this to all situations. >> it is a new farming area. our area is focused on nerve injury. you cut a nerve in your body, traditionally you would do a transfer from the patient's body or surgical implant, a medical

device subject to medical device tax. stuart: traditional medicine were put in some sort of a device, physical actual metal device to keep me going, for example. be it a tax to the implant, you come along and have this tissue, it will regrow itself and there is no tax on that tissue put into my arm. >> it regrows itself and becomes the tissue. it is a blueprint for the body if you have the injury to re-create its own nerves. stuart: are you now find yourself a way around the medical tax? >> it is on the patient. stuart: is your business booming? have you got growth so far? >> we have 50% growth year on year comparison but still at the

very beginning as medical innovation happens you have to have a building block for clinical data, educating surgeons and that is where we are today. stuart: axogen, private company. >> now, public. axgn. charles: i wrote down. stuart: thank you very much, that is excellent. forget the newest smart phone or iphone. the newest trend is multimillion dollar mansions. like in lake tahoe. that is a mention. next.

stuart: check the big board, this news has not had any impact. two big operations lowering their forecasts for the growth of the economy this year. dow down 32. the big selloff today is in the price of gold. will you look at that. down $44 pounds, oil is way down. $91. we have a show full of big numbers. government spending equals $50,000 for every household. census numbers $50,000 worth of government spending for every single household. that compares to the median

income of every household for $9500. monica: this is unprecedented. the spending blowout that started four and a half years ago under the guise of we need to simulate the economy because of the great recession. it continues. another way of putting this is in relationship to gdp. throughout the postwar time, they kept federal spending as a percentage of gdp at about 18 to 20%. obama, pelosi and reid have ratcheted up to nearly 25% of gdp. that is the new baseline. you saw this in the budget. stuart: it is astonishing government spending of 50,000 is almost the same as median household annual income. i have never seen that before. monica: it is all about locking people into dependency, which is what we were talking about at the top of the hour. stuart: we are out of time. the latest new trend to hit the tech industry.

not a smart phone or a tablet, it is a home in lake tahoe, california. the mention reporter jackson has that story and has that. you have a whole bunch of tech celebrities who are building mansions on lake tahoe. the latest is larry ellison. what is he spent? 7.6 acres compound on lake tahoe waterfront? >> larry ellison owns at least three properties on lake tahoe that we know about it he is listed one of them, which i believe is what we're looking at right now, right on the lake, and how is he spent three years thoroughly remodeling. he has a much larger, better plays a little bit further over on the lake that he will use as his primary tahoe residents. stuart: before we move to them, is there something about lake

tahoe i should know about that attractive guys with lands of dollars? >> it is beautiful, close to silicon valley. on the nevada side, no state income tax. stuart: now you are getting to it. this does interest me a lot. are you saying the tax seconds have their property on the nevada side? >> a lot of them do. not all of them. it is a second home, but for the ones were slightly older, some of them. stuart: if it were me, i would take residence on the nevada side and live live there for 18s each and every year. monica: absolutely, primary residence. stuart: but you wouldn't be paying your fair share to the government, now would you? monica: i pay my fair share, thank you. stuart: pictures and

description, please. monica: another place directly on the lake. he paid $11.875 million for it. he is a venture capitalist. placed in the bay area. stuart: number three, david duffield. >> he purchased the place, the biggest sale in lake tahoe since 2008, i believe. this really created a splash when it happened in the summer. this is just a fantastic place on the lake. i think it is similar in size around 10,000 feet. plenty of space. stuart: we have just given three very good examples. but there are a whole lot more, i take it. >> there are lots of young families who like it for the skiing, some activities, it is the place everybody you know is there on the weekends.

stuart: now, lake tahoe. are you prepared? this is the new megalopolis. it is getting a lot of these big tech names from the area. this is your story come a very good one. thank you, we appreciate you being here. first it was facebook and then it was twitter, yesterday revealed the irs could investigate your private e-mails without a warrant. they issued a nondenial denial. coming up next. ne their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent.

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ask your doctor if lunesta is right for you. then find out how to get lunesta for as low as $15 at lunesta.com there's a land of restful sleep, we can help you go there, on the wings of lunesta. stuart: google started a new service that would let users decide what would happen to their accounts after they die. they can either choose trusted contacts who can gain access to their accounts if they are inactive for several months or they can delete it, the choice is yours. starbucks is cutting the cost of the prepackaged coffee to stay competitive. 12-ounce bag will be cut even though they are cutting prices of bad coffee, drink prices stayed the same. we're keeping a close look on the dow. disappointing retail sales numbers kept the dow lower. moving lower still, off 48 at the moment.

here's what we have coming up. the irs says it doesn't look into private e-mails. wwe're calling that a nondenial denial. arthur is here, a lawyer for heavens sake. he is with us in a moment. take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? [ crows ] all stations come over to mithis is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one.

standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. you will lose 3 sets of keys 4 cell phones 7 socks and 6 weeks of sleep but one thing you don't want to lose is any more teeth. if you wear a partial, you are almost twice as likely to lose your supporting teeth. new poligrip and polident for partials 'seal and protect' helps minimize stress, which may damage supporting teeth, by stabilizing your partial. and 'clean and protect' kills odor-causing bacteria. care for your partial. help protect your natural teeth. stuart: it never stops. charles wants to make many for you and his latest idea is universal display. charles: we talk about light emitting diodes.

it is all about the new tvs coming out. stuart: what does universal display makes? charles: light emitting diodes. they have revolutionary technology, head of the curve, is being adopted. they have a tremendous market with samsung. in the meantime, new cell phones, new tvs. the new generation of flat screen tvs powered by these organic light emitting diode, we've never seen anything like it before. it will be gigantic. 70% compounded growth for the next five to seven years. i think it could go to 40. i will add the caveat it is extraordinarily volatile. stuart: be careful. all right. a big story here. the irs issued this statement

after it was revealed that it could look into your private e-mails without a warrant. here's what the irs said in response to that. contrary to some suggestions come eye rest is not use e-mail to target taxpayers. any suggestion to the contrary is wrong. on "varney and company" we're calling that a nondenial denial. look, we're all interested in this because the irs, we are financial people. they put out in their handbook and the irs in 2009 yes, we can look at your e-mails, no warrant. now this is considered a nondenial denial. explain. >> the key word there is "targets." they're going around a recent federal courtroom, the federal courts have ruled you cannot do this. you cannot sneak a subpoena to gmail and say i watch stuart

varney at gmail private account. but that really, really only helps in certain states. stuart: this is going around that. >> the aclu brought this issue to light, they say the irs, if they think stuart varney checked off that he went to rome, italy, for business and they think it is for pleasure. and they hack into the personal e-mail and they see you wrote to charles i. am going to be suckered in, i did the best restaurant, this will be a relaxing week for me. they can get that e-mail and stuart come you said this was a business, look at your e-mail, it is personal, you are arrested, in trouble, you're fine. stuart: they can still do this? they are still claiming the right to do this. are they? >> after this new federal court

ruling even though we can do it, if someone litigates it, it is very lengthy and whatever you obtain will be scaled. this is what i predict will happen, the irs are basing their authority on a 1986 statue. >> did this device exist in 1986? it is a 1986, there was no internet. don't tell that to al gore, but it was intelligible. monica: lawmakers are working right now to get around the electronic communications privacy act to make it tougher for the irs and other government agencies to go get your e-mails. to require a warrant rather than a subpoena. stuart: either way you slice it, denial, nondenial, a lot of our viewers say the writing is on the wall, they are looking at me.

they're looking at my e-mail and they don't care whatever the irs says, they think they're looking at it. >> the supreme court in the last five years basically said h you know longer have an expectation. for the convenience of cell phones and e-mail and the speed everybody wants, you have given up your privacy. forget about facebook, forget about twitter, there is zero privacy. that is out the window. but basically because of the speed we want to live in, there is no privacy. i know when they are guilty, when they are not. they come in and take the battery out of their cell phone. they are under the impression even when the phone is off, the government knows how to get into the phone and can listen to the phone conversations. stuart: who can blame them after this. >> many people have a little black tape over their camera.

stuart: i'm going to go back to writing old-fashioned letters because that is private. that is a federal crime. >> that is what he does, everything is in writing in a sealed envelope. there are contemporaries. 75-year-old shocks. stuart: good stuff. >> this is a heavy topic. stuart: we are smiling. not funny. it is not funny. now this, it was a truly disgusting scene. people openly celebrating the death of margaret thatcher. now one iconic punk rocker is speaking out against what you are seeing on your screen. that is next. this is america.

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stuart: if you listen to charles nine days ago on "varney and company" you would have made a lot of money with ashland. charles: the firm took an 8% hit

on the company, can go higher, even 95, $100. i know it sounds like getting greedy. stuart: your track record has been spectacular. it really has. to listen to, singer from the pistols changing his tune when it comes a former prime minister of written, margaret thatcher. said it cost them a lot of trouble but now that she died, she deserves a lot of respect. but you have more to add. monica: leave it to punk rock to tell the truth. the senator said and the democrats put a hold. stuart: to put a hold on the passage of a bill that would honor margaret thatcher, said we will not do this. >> a simple resolution that we honor one of the great partners fighting for freedom and

competing communism. stuart: no greater person then our great thatcher. together with ronald reagan, they changed the world. the democrats will not honor her. they won't do it. monica: i wonder what gives them pause. stuart: it is beating socialism, killing it. that is what she did. "the highlight reel" is next.

stuart: time for the highlight reel for the whole week. you are telling me tax is not a factor in a decision like this? >> one that you like to host a show and paid nothing. >> i like where i am at. stuart: microsoft, i own

microsoft. i love it. there you go. it is nearing $30 a share, ladies and gentlemen. >> robbing, doesn't it make you feel nostalgic. stuart: that was my favorite. he wrote speeches for brother andre for four -- he wrote speeches for margaret thatcher. i do not think she would have cared about all of this nastiness. she she was right. the united states senate will not pass an honorary tribute to her. shameful. on that note, dated and connell, it is